Exam 11: Global Location Decisions

A right-to-work law allows employees to decide for themselves whether or not they want to join or financially support a union.

Briefly define a business cluster.Give a location that exemplifies a real-life example of a business cluster.Describe why it should be considered a business cluster.

The following facility location technique uses quantitative and qualitative dimensions and is subject to interpretation and bias by the analyst:

The type of factory which is the source of product and process innovation and competitive advantage for the entire organization is referred to as a(n):

While business clusters seem logical in well-established areas with developed economies like Silicon Valley and Hollywood,California because companies can easily collaborate,compete,and share knowledge,some high-tech clusters have developed in areas with emerging economies such as Mexico,Singapore,and India.

According to the text,with increasing globalization the access to global markets and corporate networks makes the role of location less important as a source of competitive advantage.

The WTO is the only global international organization dealing with the rules of trade between nations.

Some companies import components,use them in the production of their end items,and ultimately export them to other countries.If a company wanted to import the components duty-free,use those components in the production of their end items,and then export them to other countries,they would most likely utilize a(n):

When an organization is considering future facilities locations,provide 3 human resource related issues that the organization would need to consider.

All of the following are considered components of fixed costs EXCEPT:

Which of the following strategic foreign facilities is set-up primarily produce products at a low cost with minimal technical and managerial resources? The items produced at these factories are often exported to countries where costs to produce similar items would be higher.

According to the text,when the location of a factory is dictated by low production costs,fairly developed infrastructure and availability of skilled workers the factory is referred to as a(n):

Which of the following would be considered a quality of life factor?

A country that imposes high tariffs encourages foreign-based companies to import goods.

Which of the following regional trade agreements is paired with the appropriate region of the world?

Your company needs to determine the appropriate location of a factory in order to take advantage of government incentives and avoid tariff barriers,the type of factory needed can be referred to as a(n):

Use the breakeven model to determine which of the statements below is TRUE according to the information provided in the table relating to two different locations considered for a new manufacturing facility. LOCATION Site A Site B ANNUAL FIXED COSTS \ 50,000 \ 20,000 UNIT VARIABLE COSTS \ 10 \ 30

A list of quality-of-life factors would most likely include proximity to customers,proximity to suppliers,tariff rates,and currency stability.

If an organization wanted to set up a facility in an area near a number of advanced suppliers,competitors,and research facilities in order to have access to current information on materials,components,and technologies the organization would likely set up a source factory.

The following facility location technique uses fixed and variable costs to analyze potential locations: